In a bold statement likely to strain bilateral ties, a senior aide to US President Donald Trump, Stephen Miller, has openly accused India of indirectly funding Russia’s war in Ukraine by purchasing oil from Moscow. The comments were made during an appearance on Fox News’ Sunday Morning Futures, where Miller criticized New Delhi’s continued import of Russian crude oil, which the Trump administration views as a source of financing for the ongoing Ukraine conflict.

According to Miller, “It is not acceptable for India to continue financing this war by purchasing oil from Russia... People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact.”

While making it clear that former President Trump values the India-US relationship, Miller added a stern caveat: “We need to get real about dealing with the financing of this war... President Trump, all options are on the table to deal diplomatically, financially and otherwise.”

India Holds Firm on Its Energy Policy

Despite these provocative remarks and growing diplomatic pressure from Washington, India has reiterated its decision to continue procuring Russian oil. Officials in New Delhi have emphasized that the decision is based on national interest, economic rationale, and energy security needs.

Sources quoted by ANI said that India considers various factors while determining its oil import sources, such as price, grade, logistics, inventories, and geopolitical stability. India has defended its approach by stating that Russia, as the world’s second-largest crude oil producer, plays a critical role in global energy supply chains.

Russia’s crude output stands at nearly 9.5 million barrels per day (mb/d), representing close to 10% of global demand, while its exports average 4.5 mb/d of crude and 2.3 mb/d of refined products. The potential displacement of Russian oil from global markets during the early months of the Ukraine war sent Brent crude prices soaring to $137 per barrel in March 2022.

Trump Slaps Tariffs on Indian Goods

In a significant escalation of tensions, President Trump imposed a 25% tariff on Indian goods on July 30, citing India’s ongoing defense and energy ties with Moscow. This trade move is seen as a direct warning to countries that maintain close commercial relations with Russia.

Moreover, Trump did not stop at tariffs alone. He warned that any nation continuing to buy Russian oil could face up to 100% tariffs, unless Moscow agrees to a meaningful peace deal in the Ukraine conflict.

The announcement has sent shockwaves across diplomatic corridors, as it challenges India’s long-standing position of strategic autonomy, especially in its energy and foreign policy decisions.

Trump’s Harsh Comments Spark Diplomatic Friction

In a separate and controversial statement posted on Truth Social, Trump lashed out at India and Russia, calling both "dead economies." He added, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

Trump also expressed frustration over India’s historically high import tariffs, calling them “among the highest in the world.” He justified the lack of substantial US-India trade by blaming India’s restrictive market policies.

These comments come as a rude shock to New Delhi, particularly as they follow years of growing strategic engagement and defense collaboration between India and the United States.

Backdrop: India’s Oil Diplomacy

India’s import of Russian oil has skyrocketed in the last few years, driven by price competitiveness and the ability to process heavy grades of crude. As Western nations imposed sanctions on Russian exports, India and China emerged as the top two buyers, helping stabilize global supply and easing the pressure on energy-importing economies.

From New Delhi’s point of view, its energy diplomacy is built on pragmatism, not politics. Indian policymakers have repeatedly emphasized that affordable and uninterrupted oil supply is crucial to managing inflation, stabilizing foreign exchange reserves, and meeting the developmental needs of its 1.4 billion people.

Moreover, India has argued that Western sanctions and policy decisions cannot be applied universally, especially on developing economies that rely on affordable energy to maintain growth.

Geopolitical Implications and Strategic Calculations

The friction with the Trump administration is likely to test the resilience of US-India relations, which had seen notable highs during both Trump's first term and the Biden administration. Strategic cooperation on Indo-Pacific security, defense agreements, and joint military exercises had underlined growing trust between the two democracies.

However, India’s energy autonomy and ties with Russia have always been sensitive issues in Washington. The Trump team’s public rebuke and economic retaliation through tariffs might harden positions on both sides and introduce a new layer of complexity to the bilateral dynamic.

At the same time, India is not alone in facing such pressures. Several Asian, African, and Latin American countries continue to trade with Russia, driven by the same imperatives of cost and availability.

India’s Response and Diplomatic Posture

While official government statements from India have remained measured, senior officials have stressed that New Delhi will not compromise on its sovereign decision-making. One senior official stated, “Energy security is non-negotiable. We purchase oil based on national interest and global supply realities.”

India is also expected to raise the issue in upcoming diplomatic engagements, pointing to the unequal burden placed on developing economies and calling for a more inclusive and nuanced approach to global sanctions.

Conclusion

The Trump administration’s criticism of India’s oil trade with Russia underscores the challenges of balancing strategic relationships with economic compulsions. While Trump’s aides have intensified their rhetoric and taken punitive action via tariffs, India seems determined to maintain its independent energy policy.

This standoff may evolve into a larger conversation about global energy equity, economic sovereignty, and geopolitical realignments. For now, India remains firm on its stance, and all eyes are on whether Trump escalates the matter or seeks a diplomatic reset.

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